DSE key index crosses 4,400 points-mark

Stocks ended higher Tuesday after two sessions flat movement with turnover remained sluggish as investors went for buying spree on financial and cement sector stocks.
DSEX, the prime index of the Dhaka Stock Exchange (DSE) crossed 4,400 points mark after three sessions and ended at 4,415.75 points, surging 37.41 point or 0.85 per cent.
The other two indices also closed higher. The DS30, comprising blue chips gained 12.91 points or 0.81 per cent to close at 1,602.32 points. The DSE Shariah Index (DSES) also advanced 7.64 points or 0.78 per cent to close at 985.51 points.
Total turnover at DSE stood at Tk 2.40 billion, registering an increase of 1.69 per cent over the previous session's value of Tk 2.36 billion.
"The market ended the session positively while inflows of funds remained flat due to the investors' ongoing cautious sentiments," commented International Leasing Securities, in its daily market analysis.
The investors were reluctant to take any long positions ahead of the announcement of the national budget, said the International Leasing Securities.
"Investors' appetite seems to be energized as the benchmark index gained 37.41 points on a single trading session on Tuesday," said LankaBangla Securities.
A firm up move amid improved market turnover value indicates that the investors are gaining confidence to buy stocks at current level after a month long bearish tone in index, said the stock broker.
"Investors might have got a positive vibe hearing approval of US$ 169 million for 13 projects under foreign loan and Japanese government's pledge for US$ 5.9 billion economic assistance," said the stock broker.
Experts have considered it a time befitting way of stabilizing the currency rate and squeezing the deficit in balance of payment, it said.
"The market has extended rally with support from financial and cement industry stocks. Bank posted 1.2 per cent gain while cement gained 2.0 per cent," said the stock broker.
"Market bounced back and surpassed its tri-session's bearish spell. The consequent buying motive in some of the large caps stepped up DSEX above 4,400 points level," said IDLC Investments.
Since national budget 2014-15 is on its way, investors have been monitoring the market phenomenon and its behavioral impact, said the merchant banker.
As the cloudy phenomena sustained in last few sessions, participants could not drive much certainly, keeping total turnover below Tk 2.50 billion-level for the third session, the merchant bank added.
"It seems that there are hardly any sellers left as the market abated at a very low level for the past couple of days, and traders have started taking positions from now on," observed Zenith Investments.
The gainers took a strong lead over the losers as out of 294 issues traded, 161 advanced, 82 declined and 51 closed unchanged on the DSE floor.
All the major sectors ended in green with food & allied posting the highest gain of 3.69 per cent. Pharmaceuticals and telecommunications increased by 1.14 per cent and 0.82 per cent respectively.
The financial sectors including banks and NBFIs also saw decent gains with 1.24 per cent and 0.47 per cent respectively. Fuel & power was up by 0.11 per cent only.
Cement sector moved up 1.95 per cent with the supportive news of foreign fund release to Annual Development Programme (ADP). But, Life Insurance continued performing negative for fourth session among the major sectors with 0.51 per cent loss.
The port city bourse -- Chittagong Stock Exchange (CSE) also closed higher with its Selective Categories Index -- CSCX-- gained 60.60 points to close at 8,478.03 points.